Reopened pulp mill: Continuing political problems

Reopened pulp mill: Continuing political problems

PORSEA, North Sumatra (JP): What seems good to some is often
bad for others. And that is exactly the case with the Indorayon
pulp and rayon mill here.

"We have suffered much because of Indorayon. I don't know what
audit means, but it would be better if the factory was closed
down," an old woman recently told foreign and local journalists
as they passed through Lumban Huala, a small village in Porsea,
around 170 kilometers south of the North Sumatra capital of
Medan.

Last year the North Sumatra provincial government ordered the
temporary stoppage of the mill's operations following strong
protest from locals. After a three-month stoppage, it resumed
operations in October, and is allowing a government-sponsored
team to monitor its operations.

A villager from Siraituruk village, Porsea, said that the
nearby mills were to blame for the drastic fall of Lake Toba's
water level because of the continued slashing of big trees around
the lake.

John Marpaung, member of an antipollution group in the town,
said that the mill's practice of dumping wastewater, containing
chlorine dioxide (ClO2) and other toxins, into the Asahan River
would increase health hazards faced by residents.

"We have learned about the hazards (posed by the toxins) such
as the very bad odor, lung infections, skin defects and birth
defects, while we have enjoyed nothing from the company in the
way of contributions to local social development programs," he
said.

The pulp factory's decade-long presence near the village has
been a constant source of controversy among residents, the local
and central government and Batak figures in Jakarta.

Locals and university students staged a series of
demonstrations near the factory, and in Tarutung and Medan,
against the mills from June until October last year.

At least two people were killed, hundreds were injured and 16
were arrested during demonstrations in Porsea and in the regency
capital of Tarutung to protest the reopening of the mills on Oct.
30. As many as 23 houses belonging to supporters of Indorayon and
those who received assistance from the company were damaged or
burned down. Six company logging trucks were also destroyed.

Aden Manurung, chief of Gala-gala Pangkailan village, told The
Jakarta Post that the majority of Porsea residents did not want
the factory to reopen as it had been harming the environment and
adversely affecting the villagers' lives.

"The factory uses chlorine dioxide (CLO2) which creates a very
bad odor, affecting all people living around the factory. The use
of chlorine is also believed to have damaged the roofs of
houses," said Aden.

Banjar Tambunan, 39, a fisherman, said that Indorayon has
affected his livelihood. He claims there are no longer fish in
the Asahan River because of pollution from the factory.

"You can see the river. The water has become dark and
brown ... The river has been badly polluted. No more fish are
found in the river and villagers living along the river can no
longer drink the river water because of the pollution," he said.

Indorayon, traded on the Jakarta and Surabaya stock exchanges,
is 62 percent owned by Singapore-based Asia Pacific Resource
International Holdings Ltd. (APRIL), listed on the New York stock
exchange. The other 38 percent is owned by the investing public,
cooperatives and several foreign financial institutions.

Benefits

Indorayon provides jobs to many people, and there are many
villages in Porsea which have received financial and material aid
from the company.

Latus Sirait, 56, a raw materials supplier to Indorayon, said
that despite the pressure from locals, he and many other people
still defend Indorayon.

"More than 10,000 people, including the company's 5,000
employees, depend for their livelihood on the company. Those
opposing the mill's presence should take this into consideration.
We are ready to go to war for this reason," he said.

He said that besides around 15 local contractors and
subcontractors, at least five villages near the factory site have
gained social benefits from the company.

Lambok Marpaung, who farmed goldfish in the Asahan River, into
which the mills dumped their waste, said that he has farmed fish
for three years without being affected by the company's
pollution.

The company's management has acknowledged that the mill's
presence has become a political issue and there are conflicts
among groups with interests both inside and outside the regency.

Rusman, the company's deputy general manager and factory
manager, said that his company would make substantial changes and
fix any damage in order to improve its image.

He said his company would carry out a reforestation program to
restore growth to the bare mountainous land in Samosir and around
Lake Toba to ensure a constant water supply to the lake.

"The company will recruit more local employees and increase
its contributions to local development programs to empower local
people," he said.

According to Rusman, 60 percent of the company's 6,000
employees are Batak. He also said the company annually pays about
Rp 1 billion to local administration and Rp 54 billion to the
central government.

Makmur, chief of the company's reforestation division, said
that his company cleared 4 percent of about 700,000 ha of total
forests in the province.

Makmur claims that not only Indorayon, but also PT Indonesia
Asahan Aluminium and the La Nia phenomenon contributed to the
fall of Lake Toba's water level.

"The lake's water level started falling long before Indorayon
started operating in 1989. Many small rivers that supplied water
to the lake have dried up because of the low rainfall over the
year (1998) caused by the La Nia phenomenon," he said.

According to Makmur, PT Indonesia Asahan Aluminium has dredged
the Asahan River to make it deeper in order to get an adequate
water supply to generate its hydroelectric plant in the
Siguragura waterfall.

Rusman claims they do not have the technology to prevent the
bad odor created by the use of chlorine dioxide.

Local authorities have criticized NGOs and some Batak figures
for complicating the Indorayon issue.

"The Indorayon issue has been overly politicized by certain
parties to discredit the government and to create ethnic tensions
for Indorayon, which has employed more Chinese descendants in its
management level," said Gandhi Tambunan, North Tapanuli regional
secretary.

Gandhi claims the Indorayon issue has been overblown by NGOs
such as the Group for Research and Development Studies, the
Indonesian Forum for Environment (Walhi), Sinta Nauli and Bona
Pasogit Foundations in Jakarta, to discredit the government and
the company.

The issue was further worsened by the long-standing leadership
conflict in the HKBP Batak Protestant denomination, Gandhi said.

According to Gandhi, former HKBP bishop SAE Nababan helped
organize the demonstration protesting the company's alleged role
in helping the local military fire him from the HKBP leadership
in its national congress in Tarutung in 1994.

"HKBP is holding a reconciliation congress in Pematang Siantar
and the Indorayon issue is expected to calm down," said Gandhi.

Gandhi said that if Indorayon was closed down, this would
discourage foreigners to invest in the country because of the
uncertain business climate, and it would set a precedent for the
closure of pulp factories in other provinces.

Lt. Col. M. Hariandja, chief of the North Tapanuli military
district, said that local authorities are seeking a win-win deal
between Indorayon and North Tapanuli society. (rms)